hello
whould you please help me. i am almost new on Dynare and i face a problem estimation and distribution section my error is (There are 3 eigenvalue(s) larger than 1 in modulus
for 3 forward-looking variable(s)
The rank condition is verified.
You did not declare endogenous variables after the estimation/calib_smoother command.
Error using beta_specification (line 63)
Beta prior (for sigma). Given the declared prior expectation, prior lower and upper bounds, the prior std. has to be
smaller than 0.000000.
Error in set_prior (line 171)
[bayestopt_.p6(k(i)), bayestopt_.p7(k(i))] = beta_specification(bayestopt_.p1(k(i)), bayestopt_.p2(k(i))^2,
bayestopt_.p3(k(i)), bayestopt_.p4(k(i)), bayestopt_.name{k(i)});
Error in dynare_estimation_init (line 152)
[xparam1,estim_params_,bayestopt_,lb,ub,M_] = set_prior(estim_params_,M_,options_);
Error in dynare_estimation_1 (line 115)
[dataset_, dataset_info, xparam1, hh, M_, options_, oo_, estim_params_, bayestopt_, bounds] = …
Error in dynare_estimation (line 105)
dynare_estimation_1(var_list,dname);
Error in nk (line 253)
oo_recursive_=dynare_estimation(var_list_);
Error in dynare (line 223)
evalin(‘base’,fname) ; )
my dynare codes are
// Variables
var pi y Y rn i m_r n a v;
varexo eps_v eps_a;
// Parameters
parameters beta epsilon theta sigma rho phi alpha phi_pi phi_y eta PSI_yan THETA lambda kappa rho_v rho_a LAMBDA_v LAMBDA_a;
beta = 0.99;
sigma = 1;
phi = 1;
alpha = 0.333;
epsilon = 6;
eta = 4;
theta = 0.666;
phi_pi = 1.5;
phi_y = 0.125;
PSI_yan = (1+phi)/(sigma*(1-alpha)+phi+alpha);
THETA = (1-alpha)/(1-alpha+alphaepsilon);
lambda = (1-theta)(1-betatheta)THETA/theta;
kappa = lambda(sigma+(phi+alpha)/(1-alpha));
rho = 1/beta-1;
rho_v = 0.5;
rho_a = 0.9;
LAMBDA_v = 1/((1-betarho_v)(sigma(1-rho_v)+phi_y)+kappa*(phi_pi-rho_v));
LAMBDA_a = 1/((1-betarho_a)(sigma*(1-rho_a)+phi_y)+kappa*(phi_pi-rho_a));
// Model
model(linear);
// Taylor-Rule
i = rho+phi_pipi+phi_yy+v;
// IS-Equation
y = y(+1)-1/sigma*(i-pi(+1)-rn); // y is output gap
rn=rho+sigmaPSI_yan(a(+1)-a); // natural rate of interest
Y = PSI_yan*(1-sigma*(1-rho_a)(1-betarho_a)LAMBDA_a)a; // actual output;
// Phillips Curve
pi = betapi(+1)+kappay;
// Money Demand
m_r = y-etai; // money demand; m_r = m-p
// Employment
n = (((PSI_yan-1)-sigmaPSI_yan*(1-rho_a)(1-betarho_a)LAMBDA_a)/(1-alpha))a;
// Autoregressive Error
a = rho_aa(-1) + eps_a; // technology shock
v = rho_vv(-1) + eps_v; // shock to i )
end;
steady;
check;
// Shocks
shocks;
var eps_v = 0.0625;
var eps_a = 0;
end;
tech = 0;
policy = 1;
varobs Y i;
estimated_params;
beta, beta_pdf, 0.99, 0.002;
sigma, beta_pdf, 1, 0.02;
phi, beta_pdf, 0.99, 0.0000001;
alpha, normal_pdf, 0.333, 0.222;
theta, beta_pdf, 0.666, 0.0225;
phi_y, normal_pdf, 0.125, 0.005;
eta, beta_pdf, 0.99, 0.002;
PSI_yan,beta_pdf, 0.99, 0.002;
THETA,beta_pdf, 0.99, 0.002;
lambda,normal_pdf, 4, 0.005;
kappa,normal_pdf, 4, 0.005;
rho_v,normal_pdf, 4, 0.005;
rho_a,beta_pdf, 1, 0.02;
LAMBDA_v,normal_pdf, 0.333, 0.222;
LAMBDA_a,normal_pdf, 0.333, 0.222;
stderr eps_v, inv_gamma_pdf, 0.01, inf;
stderr eps_a, inv_gamma_pdf, 0.01, inf;
end;
estimation(datafile= DSGEDATA1, mode_check, mh_jscale=0.3, mh_replic= 20000, mh_nblocks=2, mode_compute=5);
stoch_simul(periods=10000, irf=20);
could you please solve my dynare codes problem?